Disney

In: Business and Management

Submitted By crosszero01
Words 490
Pages 2
This case focuses on the miscues that characterized the opening of EuroDisney in France. Until 1992, the Walt Disney Company had experienced nothing but success in the theme park business. The parks in California, Florida, and Japan were busy and profitable. In the mid 1980s, Disney turned its attention to Europe, and specifically to France. When word got out that Disney wanted to build another international theme park, officials from over 200 locations around the world expressed interest. But Disney settled on Paris, largely because about 17 million Europeans live less than a two-hour drive from Paris. Another 310 million can fly there in the same time or less. In addition, the French government seemed like a willing host and offered Disney more than $1 billion in various incentives, all in the expectation the project would create 30,000 new jobs.

Unfortunately, from the beginning, the project was troublesome. Negotiations with the French government were difficult. Disney committed a string of cultural miscues. There was a backlash in France, particularly from Parisian intellectuals, who attacked the transportation of Disney's dream world as an assault on French culture. French farmers used the opening of the park as an occasion for staging a protest against the U.S. government for its insistence that French agricultural subsidies be cut. In addition, there were operational errors. For example, Disney thought that Monday would be a light day for visitors and Friday a heavy one and allocated staff accordingly, but the reality was the reverse. Disney also miscalculated the length of time that people would stay at the theme park and adjacent resort. As a result, its new hotels stood half empty most of the time.

Eventually, Disney changed its strategy and things are now going more smoothly. The company changed the name of the park from EuroDisney to Disneyland…...

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